Liquidating limited company usability speed dating
The following example may assist you in deciding on which option is best for you.
Back to top A single director/shareholder wishes to close their company on 30th April 2018.
If you’re unable to use the informal strike off route detailed above, or you have a high amount of retained profits, this is usually the most tax efficient option after you take into account Entrepreneurs’ Relief.
Again, you should speak to an accountant to get advice on your personal situation.
At the end of the liquidation process, the legal entity (company, association etc.) is eliminated from the Commercial Register.
Back to top If your company’s retained profits are more than £25,000, all shareholders have to pay income tax at their personal rate.
We’ll assume the following: Back to top You can find out more about MVLs and whether it’s right for you in our article “What is a Members’ Voluntary Liquidation? We also have a Crunch Partner who can offer you a great MVL service if this is what you decide is right for you.
This is only general information, so for bespoke advice please speak with your accountant.
However, you need to be aware that distributions from the voluntary liquidation of a company may be subject to income tax under the following circumstances: Back to top You need to take specialist advice before deciding which option to take.
Your advisor will need to consider your personal tax circumstances and the amount of profit available to distribute to shareholders.
This applies when you’ve made a profit on the original price of the shares you are disposing of.